Aave pulls ahead of MakerDAO for the title of most collateral staked on Ethereum according to the reports by Defi Pulse so let’s find out more in today’s altcoin news.
Aave now has $1.47 billion worth of crypto assets staked for credit lines while MakerDAO has about $1.45 billion in total value locked. Stani Kulechov said:
“Reaching the highest TVL was possible due to the wide range of developers building on top of Aave who are expressing their innovation in DeFi. This innovation has sparked interest from institutions [that] are now dipping their toes into Aave.”
This is the second time a project has more total value locked than MakerDAO as Aave pulls ahead measured by DeFi pulse. On June 20, fueled by the yield farming rush sparked by the initial distribution of its governance token COMP, compound took the lead for collateral locked up until July. When MakerDAO and Compound switched positions, they both had $480 million in TVL. MakerDAO now has more than twice of collateral locked up as it had then.
In the recent surge of interest in the decentralized space, four projects have broken $1 billion in assets as measured by DeFi pulses such as Curve, Aave, Maker DAO, and Compound. Founded as ETHLend, Aave is a peer-to-peer crypto lender funded by a 2017 initial coin offering that raised $16.2 million according to the data from Messari. It later pivoted to a pooled lending method that is used today. As new communities of yield farming are coming up with new schemes, Aave proves to be a key financial backbone of some projects as CoinFund Devin Walsh explained. She noted that Yearn Finance and Curve rely on Aave:
“Stablecoin deposits into either of those protocols will ultimately be deposited into Aave’s money markets. Both Yearn and Curve’s yield farming programs have contributed to the massive spike in TVL over the past few weeks and in particular over the past week.”
Another important project is Option which announced Saturday that it had created a credit default swap on the protocol. The CDS is a type of contract that insures the buyer against a third party defaulting the ban. These instruments are best known for their role in the 2008 financial crisis as they provided markets with an early warning signal of credit problems. Aave was announced as a governance token distribution plan which was not taken effect yet.
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